A cost-saving merger between Ashford and St Peter's Hospital Trust and the Royal Surrey in Guildford has cleared a significant hurdle.

Both chief executives spoke of their disappointment six months ago when their plan was called in over concerns it would be anti-competitive.

March 2015: St Peter's board approves merger proposals to move forward

It was the second time Ashford and St Peter's plans to find a hospital partner had been blocked. 

Oct 2012: Epsom Hospital merger with Ashford and St Peter's called-off

The Competition and Markets Authority today cleared the merger but will prepare a final report by October 7.

The boss of Ashford and St Peter's Hospital, itself the product of a merger, chief executive Suzanne Rankin said in a statement: "We are really pleased to see that the CMA has granted provisional clearance for the two trusts to merge. 

"Our proposal to merge is based around securing a stronger future for our two organisations which will allow us to deliver a number of important patient benefits, including more consultant care at weekends and increased investment in facilities and technology."

Nick Moberley, chief executive of the Royal Surrey, said: "While there is still a lot of hard work to do, today’s announcement marks a very positive step forward in our plans.

"Subject to approval by both boards to move to the next stage, we will embark on a wide engagement campaign to ensure people understand what these proposals mean for both patients and staff, and to hear their views.” 

A merger would save an estimated £10m to £20m according to the trusts but a staff survey at Royal Surrey show concerns over the move from consultants.

The earliest a merger could take place would be summer next year.